Is SMR a good stock to buy? We came across a bullish thesis on NuScale Power Corporation on Uncle Stock Notes’s Substack. In this article, we will summarize the bulls’ thesis on SMR. NuScale Power Corporation’s share was trading at $9.76 as of July 2nd.
Photo from NuScale Power’s website
NuScale Power Corporation provides small modular reactor technology solutions. SMR is transitioning from a research and development company into a commercial nuclear technology provider, placing it in the difficult phase between completing engineering work and generating meaningful manufacturing revenue.
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The company reported first-quarter 2026 revenue of just $0.6 million, down sharply from $13.4 million a year earlier, primarily because the prior-year period included a one-time technology licensing payment from Romania’s RoPower project, while current revenue reflects only residual engineering services.
Although NuScale posted a $46.7 million net loss and continued investing heavily in research, development, and its supply chain, its financial position remains a key competitive advantage, with approximately $890 million in cash and short-term investments, providing sufficient liquidity to support commercialization efforts over the coming years.
Management emphasized that NuScale remains the only small modular reactor developer with a design approved by the U.S. Nuclear Regulatory Commission, a mature global supply chain, and commercial components already in production, creating a significant competitive moat.
The long-term investment thesis centers on two transformative projects: the proposed 6GW Tennessee Valley Authority deployment, which could become the largest SMR program in U.S. history, and Romania’s RoPower project, which has advanced into its next development phase. While both projects still require financing, environmental approvals, and final engineering and procurement contracts before substantial revenue can be recognized, they represent multi-billion-dollar opportunities that could unlock years of module sales.
Management acknowledged that commercialization timelines remain uncertain, but the company believes its liquidity allows it to bridge this transition period. The valuation framework reflects meaningful asymmetry, with downside estimates of $4–$5 per share in a pessimistic scenario, a base-case value of $12–$15 as projects progress, and upside exceeding $25 per share if major project approvals, financing, and module orders materialize, offering investors substantial long-term potential despite limited near-term revenue visibility.
Previously, we covered a bullish thesis on NANO Nuclear Energy Inc. (NNE) by Charly AI in May 2025, which highlighted its vertically integrated microreactor platform and long-term growth potential. NNE’s stock price has depreciated by approximately 23.16% since our coverage. Uncle Stock Notes shares a similar view but emphasizes NuScale Power Corporation’s regulatory moat, liquidity, and commercialization through large-scale SMR deployments.
NuScale Power Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held SMR at the end of the first quarter which was 32 in the previous quarter. While we acknowledge the risk and potential of SMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
